Farfetch Limited (NYSE:FTCH) Q2 2019 Earnings Conference Call - Final Transcript

Aug 08, 2019 • 05:00 pm ET


Farfetch Limited (NYSE:FTCH) Q2 2019 Earnings Conference Call - Final Transcript


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Good afternoon. My name is Julie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Farfetch Second Quarter 2019 Results Conference Call. [Operator Instructions]

Thank you. I'd now like to turn the call over to Alice Ryder, VP of Investor Relations. Ms. Ryder, you may begin your conference.

Alice Ryder

Thank you, Julie. Hello, and welcome to Farfetch's second quarter 2019 conference call. Joining me today to discuss our results are Jose Neves, our Founder, co-Chair and Chief Executive Officer; and Elliot Jordan, our Chief Financial Officer.

Before we begin, we would like to remind you that our discussion today will include forward-looking statements. Actual results could differ materially from those indicated in the forward-looking statements. Forward-looking statements made today speak only to our expectations as of today. We undertake no obligation to publicly update or revise them. For a discussion of some of the risk factors that could cause actual results to differ, please see the Risk Factors section of our annual report on Form 20-F, which was filed with the SEC on March 1, 2019.

In addition, we will refer to certain financial measures not reported in accordance with IFRS on this call. You can find reconciliations of these non-IFRS financial measures to the IFRS financial measures in our earnings press release and the slide presentation, both of which are available on our website at farfetchinvestors.com.

And now I will turn the call over to Jose.

Jose Neves

Thank you, Alice. Thank you all for joining us today for our earnings call and hear about the acquisition of New Guards Group that we have also announced.

We are excited to talk to you on 3 important topics. First, our acquisition of New Guards Group, or New Guards, a brand platform that is soon to ramp. Second, we'll walk you through our second quarter financial results. And thirdly, we'll cover some of the big trends we are seeing in the market, including the tectonic shift of luxury brands online and distribution strategy.

Let me start with the incredibly exciting acquisition of New Guards. As you know, this September marks 1 year since our IPO, and we said then that it was our strategy to be the platform for the global luxury industry, connecting curators, creators and consumers. We believe this sector is going to grow $100 million in incremental online sales in the next [few years]. The next 10 years, or what we call our chapter 2, are going to see a revolution in how consumers engage and shop for luxury fashion, online and offline. Our landmark acquisition of New Guards expands our platform vision from a platform leveraged on fashion to a platform enabling a global culture of fashion.

Let me talk you through how this acquisition underlines our strategy. New Guards either owns or licenses, designs, manufactures and distributes some of the most sought-after luxury brands, including Off-White, Heron Preston, Palm Angels, Marcelo Burlon, among others. With these brands, New Guards has